The Bundesbank revealed that core inflation is peaking, while price pressures are receding very slowly, fearing that there is a growing risk that inflation will remain above 2 percent.
According to the Bundesbank, the impression prevailed that inflation rates would last longer above the rates targeted by central banks. In particular, persistent high wage pressures may make it difficult to continue to curb inflation.
The European Central Bank raised interest rates from negative territory to 3.75 percent in just one year, the fastest pace ever, but monetary tightening is now coming to an end, and policymakers are debating whether a final rate hike is needed.
Source (Al-Asharq Al-Awsat Newspaper, Edited)
